The large-scale manufacturing sector (LSM) witnessed nine percent growth in Nine Months Period between July and March 2020-2021 compared to negative growth of 5.1 percent over the same period last year, according to the recently released Pakistan Economic Survey 2020-21.
The survey said LSM’s expansion was broad, reflecting increased production in key industries.
This is the highest growth in the last thirteen years, supported by the promising performance of textiles, food beverages, and tobacco and cars.
The prime minister’s announcement of the construction package also supported all other allied industries, such as increasing cement supplies and steel and steel production.
The survey found that on a year-over-year (year-on-year) basis, LSM has shown a positive path since July FY2021, stating that the government’s proactive role led to record LSM growth even beyond Pre-COVID levels.
Of the 15 industries, nine showed positive growth, while six showed a declining trend.
LSM rose by 22.4 percent in March-FY2021 from a 21.7 percent decline in the same month last year, a time when a pandemic began to hit business.
It is encouraging to note that LSM’s annual performance is improving compared to previous years.
The month-on-month performance was also satisfactory, as LSM showed an average growth of 2.9% per month in the current financial year.
The survey said the pandemic also helped increase clothing manufacturers’ exports, as there were many export orders for the Pakistani clothing industry from European and US markets due to the serious impact of Covid-19 in our regional countries.
The textile sector had the highest weight of 20.91 in the Quantum Index of Manufacturing (QIM), which showed a growth rate of 5.90 percent in the period July-March FY2021 against a 2.58 percent decrease in the same period last year.
Food, beverages and tobacco with the second highest weight of 12.37 on QIM showed an increase of 11.73% compared to a decrease of 1.69% last year.
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